Why a Home Appraisal is Important
Do You Need an Appraisal?
What is a home appraisal?
An appraisal determines how much your real estate, or the real estate you are looking to buy, is worth. It is the value of a home and land including any renovations that may or may not improve the value.
Why Sellers Need an Appraisal
Homeowners use an appraisal to help value their home so that they know what to list their property for. Sellers may expect their home to be valued higher because of all the hard work and care they have put into their property over the years but an appraiser will only consider items that impact the value. The truth is an appraisal will give the seller a better idea of what the home’s market value is, compared to other homes in the area. The seller’s broker will obtain comps of the area (or data), compare the comps to the appraiser’s report and will be better equipped to list the property for sale.
Why Buyers Need an Appraisal
An appraiser will assist a buyer in evaluating the current condition of a property and setting a price tag to it. Instead of basing the purchase decision on what is being offered by the seller buyers use a pre-appraisal to make sure the property is in line with the true market value. Buyers using an appraiser will save more money and expect fewer surprises in regards to repairs that need to be addressed.
Why Lenders Need an Appraisal Report
Buyers, sellers and agents aren’t the only ones with a need for appraisers. Lenders use an appraisal to assist them in making the decision to lend money. Outside of other required factors set forth by the lender, an appraisal gives them a third-party assessment of the property. This helps in determining if the loan amount is adequate for what has been requested.
Use an Appraisal to Evaluate Property Taxes
Instead of relying solely on the county’s tax assessment of the property, owners can use appraisals to determine what their property taxes should be based on the value of the home. Should the need arise to dispute property taxes with the county; an appraisal is useful and often required.
Find a Qualified Real Estate Appraiser
Professional real estate appraisers provide you with peace of mind whether you are a buyer or seller. You can rest assured that an appraiser works as a third-party representative with no interest in the transaction. This keeps everyone honest so to speak.
Don’t Fear the Appraisal Process
An appraisal takes a lot less time than you may think and are worth the expense compared to what a repair surprise could cost. In some cases an appraisal can be free. Expect to spend 15 to 30 minutes with the appraiser but don’t expect them to answer questions outside of the appraisal. Appraisers are unable to give you buying or selling advice.